effctively communicating risk through an organisation

Rock art (C.Zwick)

Effectively communicating risk through an organisationJune 2013 Greg Saunders

www.environment.gov.au

Today’s presentation

Defining a risk management strategy for the organisation;

How are you going to define risk; What are the key messages? Working with Senior Managers; Ensuring accessibility of risk management

practitioners to staff at all levels; What is an effective risk management culture

– engagement vs. compliance Enabling change to implement effective risk

management; A little bit about risk and risk ownership; and Questions


Defining a risk management strategy

Set the tone;Focus on value creation not just

value protection;Set some guiding principles;Determine the right risk

infrastructure;Reference key contributors – people,

process, data capture; and Articulate how risk based decision

making will occur.


How are you going to define risk? Risk can be an uncomfortable topic of conversation.

People think of risk in terms of threats — bad things

happening

Consider the other side of risk, the one that applies to

value creation

So consider adopting a more expansive definition of risk,

one that gives equal weight to both value preservation and

value creation.


What are the key messages Think carefully about what it is that you want

people to hear; Remember that risk management is a natural

process for people; Two major points for success in communicating

risk;Engaging with riskEngagement with the risk management process

Risk management needs to have clear focus – two way;

Clear and consistent language – clear unambiguous definitions;

Don’t over-complicate the process.


Working with Senior Managers

Where do you sit within the organisation; Who are the risk champions – utilise them; What is their present attitude towards risk

management – compliance or an enabling process;

Tailor your approach to harness opportunities; Use you knowledge of internal networks to

gain leverage; Make the process useful to them; Keep your focus on beneficial outcomes; and Remember they can make or break the

effectiveness of risk management in your organisation.


Ensuring accessibility staff at all levels Pick the right people for your team; Sound RM knowledge or ability to gain; Good people skills; Empathy; Get off the phone and get out and meet with

stakeholders; Able to facilitate meetings and workshops; Have a sound understanding of what the

stakeholders do – what is their business; and Consistency in delivery – language,

engagement with risk, process and outcome focus.


What is an effective risk management culture?

Dependent on maturity of your program; Tone from the top a key driver; Engages with risk; Uses risk management as an enabling tool;

and People talk about risk in value creation terms

as well as value preservation.


Enabling change to implement effective risk management

Change Enablement Priority Consequence if Unaddressed

Top management commitment and support No leadership or role models

Compelling business case for change No Action

Clear shared vision No direction or focus

Realistic goals No credibility or impact

Well defined action plan for change No roadmap

Stakeholder engagement and support No commitment or momentum

Accountability for results No ownership

Manage the “human side” and effective communications

No endorsement of change or consistency in execution

Process view of implementing change No systematic approach

Align performance measures No achievement of objectives or realisation of benefits

Align process with culture No success

Permanent Change Nothing Happens


A little bit about risk and risk ownership Implementation of effective risk management does

require the identification of individual risk owners; Resolution of the process ownership questions for

critical risks is one of the most important tasks in implementing effective risk management;

Executive management ensures that responsibilities, authorities and accountabilities are defined and articulated clearly;

The so called risk owner has the responsibility, authority and accountability to manage the risk;

Risk owners may elect to outsource the responsibility, However, if they do, that does not compromise their ownership of risk.


A final comment

“Risk is good. The point of risk management is not to eliminate it.

That would eliminate reward. The point is to manage it. That is, to

choose where to place bets and where to avoid betting altogether”

* Th. A. Stewart – Managing Risk in the 21st Century


Questions

Greg Saunders

Director Governance and Risk Management

E: [email protected]

P: 02 62742541

M:0407401508

mailto:[email protected]

effctively communicating risk through an organisation

Documents